Seigniorage, also spelled seignorage, is the net revenue derived from the issuing of currency. It arises from the difference between the face value of a coin or bank note and the cost of producing and distributing it. Seigniorage is an important source of revenue for some national governments.

Seigniorage can be regarded a form of tax levied on the holders of a currency, and as such a redistribution of resources to the issuer. Expansion of the monetary base, by issuing currency, can however induce inflation and a government relying heavily on seigniorage as a source of revenue will find it counterproductive in the long run. Examples include the hyperinflation in Germany, during the 1920s. Most governments opt instead to raise revenue primarily by taxation, thereby preventing excessive inflation.

See also: Central bank, Money